US-based Honeywell has declared a force majeure on caprolactam production from its plant at Hopewell, Virginia, effective Tuesday, sources in Asia said Thursday.
The sources cited tight availability of phenol feedstock for the 375,000 mt/year plant as the reason for the force majeure. Caprolactam is made from cyclohexane, which can be derived from either benzene or phenol.
Caprolactam production at the plant has been cut, sources said, but the operating rate has not been disclosed by the company.
Honeywell has also cut supplies to its contract customers in China and Taiwan, the sources said.
Honeywell typically exports about 5,000-6,000 mt of caprolactam to China and Taiwan every month, usually in a 50:50 ratio.
In 2010, the US shipped a total 75,210 mt of caprolactam to China, nearly 12% of the 631,930 mt that the latter received for the year.
